Question 4

Alastair was the registered owner of Blackacre, he lived there with his long term companion,
Nick and they both contributed to the purchase price. Blackacre is a farm which includes two
fields known as White Field and Gold Field.
Last year:
i)Alastair orally agreed that Stephen could rent White Field for three years for an annual rent of
£1,000
ii)Alastair granted Dawn, by deed, the right to use a shortcut across Gold Field to access the
road from her house
iii)Alastair agreed, in writing, to give Roger the right to purchase Blackacre anytime over the
next decade Nick went to Tibet for an indefinite period.
Last month Alastair sold Blackacre to Iggy who is now the registered owner of Blackacre. Iggy
asked Stephen to leave White Field and refused Dawn permission to cross Gold Field. Roger
now wants to exercise his option. Nick has now returned to claim what “is rightfully his”.
Alastair has disappeared with the proceeds of the sale. Iggy has asserted that he is not bound
by Roger’s option and owes
Nick nothing.
Advise Stephen, Dawn, Roger and Nick.

Answer:

Roger and Iggy

OTF it appears that Roger had agreed in writing that he would sell he property to Roger.

Now if that document satisfies S2 LP(MP)A 1989, the Roger would have an estate contract
which amounts to a property right., as illustrated in Walsh v Lonsdale. However, if it is merely a
document that does not amount to an estate contract, he simply has a personal right as
illustrated in Thomas v Sorell.

In the even it is a property right, Roger should know that his right which is an option to
purchase may only exist as an equitable right as per S1(3) LPA 1925.

In order to protect his interest he will be expected to enter into a notice and if he fails ton do so
he will have to rely on overriding interest found under Schedule 3 Para 2. It is highly unlieky
that he is in AO and therefore, he fails to aquir a binding equitable right and Iggy can refrain
from selling the estate to Roger. TT_TT